Patrick Industries (PATK) PT Lowered to $66 at MKM Partners

MKM Partners analyst Scott Stember lowered the price target on Patrick Industries (NASDAQ: PATK) to $66.00 (from $86.00) while maintaining a Buy rating.

The analyst commented, "Following our attendance at the Open House event in Elkhart, IN last week and spending time with company management, (see industry note dated September 28), we are reiterating our Buy rating on PATK shares, yet lowering our price target to $66 (from $86). This is based on a slightly higher P/E of around 9x (up from the previous 8x, as we shift closer out to potentially trough-like EPS) our lower FY23 EPS forecast of $7.38 (down from $10.24). While this less constructive view reflects the impact of the near term plunging of RV production rates and the likelihood that higher interest rates will place additional pressure on non-RV businesses, we still expect that a diversified business model, which includes the benefit of an emerging (and less cyclical) aftermarket bullishness, will help to offer a cushion for Patrick, over the next 18+ months."

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